How Precious Are Precious Metals to the Green Economy

As the largest recycler of electronic waste in the US, Fresno-headquartered Electronic Recyclers International is licensed to de-manufacture and recycle televisions, computer monitors, computers and other types of electronic equipment. ERI processes more than 120 million pounds of electronic waste annually at locations in California, Washington, Colorado, Indiana, Massachusetts, Texas and North Carolina. For more information visit: http://www.electronicrecyclers.com

That is why the U.S. Environmental Protection Agency, the U.S. General Services Administration, and the State of Colorado toured a Denver electronics recycler as part of the Obama Administration’s strategy to promote job creation and the responsible recycling of electronics products. You see, the federal government is the nation’s largest single consumer of electronics, purchasing about $85 billion of information technology annually, of which $14 billion is for equipment. By some estimates, the federal government disposes of 10,000 computers every week.

Ironically, the precious metal industry is occasionally dominated by metals like Gold, Silver, Platinum and Palladium. The top 5 stocks in terms of dividend yield for this year are listed below:

AZZ, whose dividend yield is 1.30%

Matthews International, whose dividend yield is 1.20%

Mueller Industries, whose dividend yield is 1.00%

Dynamic Materials, whose dividend yield is 0.90%

Barrick Gold Corp, whose dividend yield is 0.84%

Back on Jan. 9, 2012 I reported that Surplus Exchange of Kansas City, Mo., was recognized by EPA and the General Services Administration (GSA) for achieving certification to the e-Stewards Standard for Responsible Recycling and Reuse of Electronic Equipment Program. Surplus Exchange is the first recycling facility in Missouri to attain this prestigious certification.

This event was part of the Obama Administration’s “National Strategy for Electronics Stewardship,” which is a strategy for responsible design, purchasing, management and recycling that promotes sound electronics recycling. Electronic waste from old cell phones, computers and other devices often contains toxic chemicals and heavy metals.

As a certified e-Steward recycler, Surplus Exchange operates its facility in accordance with the most stringent certification standards in the electronics recycling industry. Surplus Exchange was subject to extensive and rigorous audits conducted by an accredited certifying body to ensure compliance with the e-Stewards Standard. The facility processes nearly 2.2 million pounds of electronics for reuse and recycling annually.

Precious Metal Stocks and hedge fund managers

Another classification can be made on the performance of the metal stocks based on hedge fund managers. The top 5 are listed below and the number in the brackets represents the number of hedge funds.

Freeport-McMoran Copper and Gold Inc. (53)

Newmont Mining Corporation (NEM) (40)

Vale S.A (29)

Cliffs Natural Resources, Inc. (25)

Molycorp, Inc. (24)

Performance and Analysts View

Coming over to precious metal performance, Silver has been on the higher side with an increase of 0.20% in 2013. The second position is occupied by Gold, followed Platinum and Palladium. The stocks of precious metal can be divided into mining stocks, jewelry sector stocks and ETFS. In each case, there is slight variation in terms of the profit margin.

The views of pundits and market analysts vary upon the level of investment in metal. Most of it is focused on the use of cheaper technology for cost effective mining of precious metals. There’re also the case of ETFs and how their demand has varied during the last few years. Silver ETFs are now at far with Gold ETFs on the account of inflation. Analysts like Ken Fisher, Fisher Investments are highlighting the importance and benefits of using low-cost technology. This is evident from the case of Cliffs Natural Resources, whose stake has been increased after the investment from Ken Fisher.

Precious Metals Recycled for Jewelry

Donna Distefano Ltd in NYC has been committed to using recycled precious metal for more than 15 years. Always looking for ways to minimize the impact of goldsmithing on the planet, Distefano chooses to use pure gold supplied by refiners rather than miners, then creates custom high-karat gold alloys herself. Mining creates literally tons of environmental waste, says Distefano. There is plenty of gold already in circulation, and by using recycled gold we can diminish our impact on the environment just a little bit more.

Donna began incorporating charitable donations as a core value of her business back in 1996 by designing and marketing a rosary called Truth for God s Love We Deliver.

Over the past five years, Distefano has increased the reach of her “Giving Back” program by hosting events for Women for Women International, the Environmental Defense Fund, and most recently, OneKid OneWorld.

By donating jewelry for fundraisers, hosting events in her New York City atelier, and pledging a percentage of profits from the sale of dedicated designs, Distefano has raised awareness and aid for those who need it most.

When it comes to the stock market of precious metals, geopolitics plays a major role in terms of deciding the volatility. An example comes from Middle East, where there are a lot of mining companies whose stocks operate in U.S. These stocks are considered volatile on the account of the inconsistent political scenarios in that region. These geopolitical scenarios are further divided into play with currency and market moves. Owing to the uncertainty, there has always been an element of investors shying away from such stocks. Those who invest take a risk on the demand of the precious metals and also the sustenance of the dollar in the international market.

In 2013, the precious metal stocks have been doing well with silver stocks leading on occasions. Before making any investment, it is important to take a look at the forecast and where the market is heading too. In the status quo, mining stocks are deemed a better choice than the ETFs. The reason is the occasional volatility of ETFs. They pay off well but there is always an impending risk. There, it’s imperative to make a wise decision when it comes to investment in precious metal stocks.

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The Green Living Guy, Seth Leitman is a green living expert, celebrity and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author, Radio Host, Reporter, Writer and a Environmental Consultant on green living. The Green Living Guy writes about green living, green lighting, the green guru guides and more. Seth's books range from:
# Build Your Own Electric Vehicle by Bob Brant and Seth Leitman (2nd and 3rd editions)
# Build Your Own Plug-in Hybrid Electric Vehicle by Seth Leitman
# Build Your Own Electric Motorcycle by Carl Vogel
# Green Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky
# Solar Power For Your Home by David Findley
# Renewable Energies For Your Home by Russel Gehrke
# Do-it-Yourself Home Energy Audits by David Findley
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